In the most recent sign that Chilean securitizers are branching out, Santander Sociedad Securitizadora is backing a deal with future flows from contracts between the Public Works Ministry (MOP) and the concessionaire of Costanera Norte, a road project cutting across the capital city of Santiago. The multi-tranche bond will be worth 2.01 million inflation-indexed units (UF), about US$44.6 milllion at the current exchange rate. It is due out in the first half of November.

The deal marks Chile's first securitization of government contracts and forms part of a more aggressive push among local securitizers into unexplored terrain. (see ASR 9/16 p. 1) To date, Chilean global 2009s are the only government assets to back a domestic securitization. Santander structured that transaction as well, which amounted to the UF equivalent of US$52 million and priced at 5.7% or 65 basis points over the government's PRC bonds on January 7, 2002. Standard & Poor's affiliate Feller Rate and Fitch Ratings rated that deal AA+' on the national scale, even though the sovereign has a national scale rating of AAA'.

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